The Schedule Of Values (SOV) & Requisition In Construction | A Step-By-Step Guide With Examples
When to use a schedule of values
A schedule of values must be finished by any contractor performing multistep residential projects or commercial construction. The homeowner and architect must concur on the list of items, cost estimates, and payment schedule. An insurance company, homeowners association, township, or municipality may also ask to see this document.
What is a schedule of values?
A schedule of values is a detailed list of the tasks required for a construction project that also includes the payment values assigned to each task. This document provides a chronological explanation of each contract step — S O. V. is a common name for this itemized list. They are used by contractors to coordinate projects, speak with architects, inform clients, and gather payments.
Benefits of using a schedule of values
It is typically necessary to create a schedule of values, but it is also an extremely useful management tool. The advantages of applying a schedule of values to your next construction project are as follows:
Creates and maintains order
A schedule of values is a bit like a map. For clients, individual workers, foremen, and the person in charge of designing it, it creates a visual timeline. It takes a lot of planning and coordination to renovate someone’s home, build a brand-new structure, or design or add on to a commercial building. It is necessary to finish some tasks before beginning others, and starting these tasks in the correct order saves money. For instance, before a plumber can fit and install new pipes, a demolition team must remove the sheetrock from the room. In this way, the S. O. V. serves as a reference guide and can aid in focus and organization.
Increases accountability and trust
Accountability entails taking responsibility for your actions and keeping your word. A schedule of values outlines the appropriate sequence for task completion and provides a breakdown of all associated costs. Giving your client access to this document establishes expectations and establishes a schedule for you to follow. Building trust with your client by completing every task on the itemized list, arriving on time, and adhering to the budget estimates. Building trust and accountability is essential for fostering enduring client relationships as well as new business referrals.
Sets clear expectations for team members
What someone is expected to do at work is described by team member expectations. Everyone on the construction site benefits from understanding their individual objectives and responsibilities by sharing the schedule of values. It provides a chronology of the events and aids each person in staying on track to live up to the standards you have for them in their position. You can also use an S. O. V. as a reference sheet for giving constructive feedback.
Makes collecting payments easier
Multi-step construction jobs usually involve multi-step client payment plans. Collecting those payments is easier if your client accepts the schedule of values beforehand. This document includes the estimated dates of service and client payment, as well as the price and values for each job component. A business or homeowner is more likely to be able to pay their bills on time if they are given advance notice of when they are due.
How to structure a schedule of values
The information in your schedule of values should be clear and accessible to all parties involved. The heading, spreadsheet, and consent sections should make up its three main sections. The following details what to put in each of these three sections:
1. Heading and basic information
This section should appear at the top of your document. The following items should be included in your heading and basic information section:
2. Project spreadsheet
This section should directly follow the heading and basic information. You itemize each task’s component parts, provide a timeline, and estimate costs in your spreadsheet. This table should consist of rows and columns and be simple to read and understand. The following details ought to be in your comprehensive project spreadsheet:
Rows run horizontally across a spreadsheet. The following items should be represented in rows on your spreadsheet:
In a spreadsheet, columns and rows intersect vertically. Each column’s representation of the items should match the row’s title. For instance, if the construction project you’re planning has six itemized components, each cell in that column needs to contain six different item serial numbers. Similarly, the cells below the row representing scheduled value should have six dollar amounts listed.
3. Consent and acknowledgment
The final section of your schedule of values should be consent and acknowledgment. This must have spaces for the client’s, architect’s, and contractor’s print and signatures. Additionally, there should be a place for each party to indicate the date they acknowledge in the document. Use a safe e-signature platform or request signatures in person.
Frequently asked questions about a schedule of values
Following are five frequently asked questions about creating, revising, and utilizing a schedule of values for contracting jobs:
Is there a standard or required schedule of values form?
No, there isnt a required form. You are free to structure the form however best serves your needs because the American Institute of Architects has not published a model document for you to follow.
Should I use a schedule of values for GMP contracts?
Yes, for contracts with a guaranteed maximum price (GMP), you should use a schedule of values form. (A detailed schedule of values is a highly beneficial management tool that can establish order, promote accountability, and boost client trust. This form can be used for jobs with a fixed price or a guaranteed maximum price, and it still offers transparency.
What happens if I make a mistake on a schedule of values?
If you make a mistake on your schedule of values, the architect will probably notice it. You can easily correct the error and submit your S as long as you or the architect catch it before the client signs and accepts the document. O. V. to the architect.
Can I change the price for items if I am using a schedule of values computer software program?
Yes, you can change the price for individual items. Most software programs require an approved budget transfer process to make this kind of change for auditing purposes. After budget approval, your future invoices will all have a new standard price.
When should I give my client the schedule of values?
As soon as you receive an architect’s approval, you should deliver a copy of the schedule of values to your client. It is crucial that your client review and sign both of these documents before you begin any work, so it should be provided to them together with the contract.
What is an SOV invoice?
- Step 1: Confirm the Contract Price. …
- Step 2: Add Work Items. …
- Step 3: Determine Each Item’s Value. …
- Step 4: Update As Work Is Completed. …
- Step 5: Review and Confirm Values. …
- Step 6: Submit With the Application for Payment.
What is a SOV document?
A schedule of values (SOV) is a billing tool used by construction companies to charge projects according to the status of the job. Every billable item on the project is listed in a schedule of values, along with the task’s subsequent dollar value.
How do you do a SOV?
The Contractor and its Subcontractors prepare the Schedule of Values (SOV) to itemize the costs of each work item on a construction project. This is typically created by the project manager or cost estimator for the project.